Point value

Point value refers to the monetary value of a single point change in the price of an option, considering the contract size or lot size of the underlying asset. In options trading, the quoted price typically represents the cost for a single unit of the underlying asset. However, options are usually traded in lots, each consisting of a set number of units (e.g., 100 shares for equity options).

For example, if an option's quoted price is $1, and the contract size is 100 units, the point value would be $1 multiplied by 100, resulting in a total value of $100 for each point of price movement. Understanding point value is essential for accurately calculating an options position's total cost or profit based on its quoted price.